BMO Capital Markets slashes price target on Canopy Growth Corporation [CGC] – find out why.


Canopy Growth Corporation [NASDAQ: CGC] plunged by -$0.09 during the normal trading session on Friday and reaching a high of $2.68 during the day while it closed the day at $2.62. The company report on June 30, 2022 that Canopy Growth Announces Additional Exchanges with Holders of Notes.

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Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) announced today that, further to its press release dated June 29, 2022, it has entered into an additional privately negotiated exchange agreement (the “Exchange Agreement”) with a holder (the “Noteholder”) of the Company’s outstanding 4.25% unsecured senior notes due 2023 (the “Notes”), to acquire approximately C$7.25 million (approximately USD$5.6 million) aggregate principal amount of the Notes from the Noteholders in exchange for common shares of the Company (the “Canopy Shares”) and approximately C$140,000 (approximately USD$110,000) in cash for accrued and unpaid interest (the “Cash Payment”).

Canopy Growth Corporation stock has also loss -8.07% of its value over the past 7 days. However, CGC stock has declined by -63.51% in the 3 months of the year. Over the past six months meanwhile, it has lost -68.70% and lost -69.99% year-on date.

The market cap for CGC stock reached $1.03 billion, with 393.71 million shares outstanding and 251.80 million shares in the current float. Compared to the average trading volume of 6.30M shares, CGC reached a trading volume of 16749932 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Canopy Growth Corporation [CGC]:

BMO Capital Markets have made an estimate for Canopy Growth Corporation shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on June 08, 2022. The new note on the price target was released on March 22, 2022, representing the official price target for Canopy Growth Corporation stock. On December 20, 2021, analysts decreased their price target for CGC shares from 11 to 7.

The Average True Range (ATR) for Canopy Growth Corporation is set at 0.29, with the Price to Sales ratio for CGC stock in the period of the last 12 months amounting to 1.85. The Price to Book ratio for the last quarter was 0.24.

CGC stock trade performance evaluation

Canopy Growth Corporation [CGC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.07. With this latest performance, CGC shares dropped by -38.21% in over the last four-week period, additionally sinking by -68.70% over the last 6 months – not to mention a drop of -87.98% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CGC stock in for the last two-week period is set at 29.32, with the RSI for the last a single of trading hit 25.37, and the three-weeks RSI is set at 32.24 for Canopy Growth Corporation [CGC]. The present Moving Average for the last 50 days of trading for this stock 4.51, while it was recorded at 2.70 for the last single week of trading, and 8.34 for the last 200 days.

Canopy Growth Corporation [CGC]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Canopy Growth Corporation [CGC] shares currently have an operating margin of -111.20 and a Gross Margin at -25.66. Canopy Growth Corporation’s Net Margin is presently recorded at -58.08.

Return on Equity for this stock declined to -8.55, with Return on Assets sitting at -4.82.

Earnings per share (EPS) analysis for Canopy Growth Corporation [CGC] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CGC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Canopy Growth Corporation go to 33.40%.

Canopy Growth Corporation [CGC]: Insider Ownership positions

There are presently around $159 million, or 18.79% of CGC stock, in the hands of institutional investors. The top three institutional holders of CGC stocks are: VANGUARD GROUP INC with ownership of 7,878,052, which is approximately 3.6% of the company’s market cap and around 36.20% of the total institutional ownership; ETF MANAGERS GROUP, LLC, holding 7,325,327 shares of the stock with an approximate value of $19.19 million in CGC stocks shares; and D. E. SHAW & CO., INC., currently with $10.67 million in CGC stock with ownership of nearly 138.355% of the company’s market capitalization.

Positions in Canopy Growth Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 133 institutional holders increased their position in Canopy Growth Corporation [NASDAQ:CGC] by around 12,601,097 shares. Additionally, 172 investors decreased positions by around 17,641,728 shares, while 146 investors held positions by with 30,331,568 shares. The mentioned changes placed institutional holdings at 60,574,393 shares, according to the latest SEC report filing. CGC stock had 48 new institutional investments in for a total of 1,796,074 shares, while 74 institutional investors sold positions of 3,523,931 shares during the same period.